The Supreme Court verdict in power NPAs case has come as a huge relief for power companies as the apex court on Tuesday transferred all pleas filed before different high courts to itself in the case.
Hearing the plea filed by the Reserve Bank of India (RBI) seeking transfer of all cases filed against its February circular to the Supreme court, the SC asked the RBI and other parties to maintain status quo with respect to insolvency proceeding against power companies. And status quo as of now means in effect the RBI’s February 12 circular stays.
Meanwhile, no case can be filed anywhere now including the National Company Law Tribunal (NCLT).
Private power companies, bank employees, textile associations had filed about a dozen cases against the controversial circular in various high courts.
According to reports, the RBI’s plea in Supreme Court will be heard in November.